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Seoul, September 5, 2026 -South Korea recorded a striking current account surplus of $42.08 billion in July, marking one of the strongest monthly performances in its economic history.
The figure, released by the Bank of Korea, underscores the country’s reliance on semiconductor and technology exports as global demand for advanced chips continues to surge.
Exports climbed 65.3 percent year-on-year to $100.45 billion, sustaining momentum above the $100 billion mark for the second consecutive month.
Semiconductors and solid-state drives were the primary drivers, reflecting South Korea’s central role in global supply chains.
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Imports also rose, up 21.7 percent to $60.02 billion, led by semiconductor manufacturing equipment and crude oil purchases.
The goods account surplus reached $40.43 billion, the second-highest on record after June’s $47.89 billion.
This robust trade balance helped offset weaknesses in the service sector, where the deficit widened slightly to $1.97 billion.
Travel services, which had posted a surplus last year, slipped into a $340 million deficit, highlighting ongoing challenges in tourism recovery.
Meanwhile, the primary income account posted a $4.35 billion surplus, buoyed by overseas dividend income from domestic chipmakers.
The cumulative current account surplus for the first seven months of 2026 stood at $233.09 billion, nearly quadruple the level seen during the same period in 2025.
Financial account data showed net asset growth of $40.32 billion in July.
Overseas direct investment expanded by $3.36 billion, while foreign direct investment in Korea fell by $780 million.
Portfolio flows reflected strong investor activity: local residents invested $13.57 billion abroad, while foreign investors injected $8.17 billion into Korean stocks and bonds.
The July figures extend South Korea’s streak of 39 consecutive monthly surpluses since May 2023, underscoring resilience amid global economic uncertainty.
Yet the reliance on semiconductors raises questions about sustainability.
Analysts warn that any downturn in chip demand could expose vulnerabilities, particularly as service deficits persist.
For now, South Korea’s external accounts remain a pillar of stability.
The record breaking surplus highlights both the strength and the risks of an economy tethered to the fortunes of its technology sector.
